Robyn rents her beach house for 60 days and uses it for personal use for 30 days during the year.The rental income is $6,000 and the expenses are as follows: $$\begin{array} { l r }
\text { Mortgage interest } & \$ 9,000 \
\text { Real estate taxes } & 3,000 \
\text { Utilities } & 2,000 \
\text { Maintenance } & 1,000 \
\text { Insurance } & 500 \
\text { Depreciation (rental part) } & 4,000
\end{array}$$ Using the IRS approach, total expenses that Robyn can deduct on her tax return associated with the beach house are:

Question

Robyn rents her beach house for 60 days and uses it for personal use for 30 days during the year.The rental income is $6,000 and the expenses are as follows: $$\begin{array} { l r } 
\text { Mortgage interest } & \$ 9,000 \
\text { Real estate taxes } & 3,000 \
\text { Utilities } & 2,000 \
\text { Maintenance } & 1,000 \
\text { Insurance } & 500 \
\text { Depreciation (rental part) } & 4,000
\end{array}$$ Using the IRS approach, total expenses that Robyn can deduct on her tax return associated with the beach house are:

Quizplus · Accepted Answer

According to the IRS approach, Robyn can deduct expenses related to the rental period plus a portion of the expenses related to personal use.

Expenses related to the rental period are $4,800 ($8,000 - $3,200).

Expenses related to personal use are $1,600 ($5,000 x 30/90).

Therefore, total expenses that Robyn can deduct on her tax return associated with the beach house are $6,400 ($4,800 + $1,600).

Option D is correct as it matches this value.

Robyn Rents Her Beach House for 60 Days and Uses